The SEC WhistleBlower program began its role in 2010 under the Dodd-Frank Act. The Dodd-Frank Act was an enactment of the reforms of the Wall Street and Consumer Protection Act to recover from the Great Depression.
The SEC provides avenues for employees to report violations to work with protection from the Securities and Exchange Commission.
The program pays the whistleblower 10%-30% of the total amount from the enforcement actions on the act if the value reaches $1 million. On exceeding the $1 million mark, the individual has added another value from the computation of values derived as a result of reports from other organizations and legal unions.
By June of 2016, the total leverage awarded to whistleblowers was estimated to be $17 million.
The award was the 6th to be computed since the beginning of the SEC operation.
The program protects the whistleblower from retaliations by employers at work with the representation of a whistleblower lawyer.
The Labaton Sucharow legal enforcement firm, led by Jordan A. Thomas, was the first company in the nation to practice protection of the SEC whistleblowers. The company, which began operations 5o years ago, the firm provides expert researchers, forensic accountants and financial data analysts who have experience in the general and legal field.
Jordan A. Thomas was a former leader at SEC overseeing the creation and implementation of the Whistleblower program by drafting, proposing and executing the necessary plans.
To further protect the whistleblower, the individual is neither required to provide their personal information nor that of the alleged violators. Whistleblowers facing a language barrier concern can access free translation services upon request.
A former Labaton Sucharow client provided vital information to sue a violator in the financial markets. The SEC maintained its work ethic of protecting their client’s privacy.
Jordan stated that his client was courageous to blow the whistle and solve the accumulating problems encountered by investors due to the violation. He predicted that future enforcement acts would be results of such brave employee actions. The future enforcement against alleged lawbreakers the finance industry will have a similarly powerful effect on businesses.
Jordan also followed the SEC regulations by charging an employer for retaliating against a whistleblower. He has also received an award in the representation of a whistleblower.
To ensure that the awards are consistently available, the Congress founded the Investor Protection Fund to replenish the amounts. The present balance in the Fund’s account is estimated to be $400 million.